Saudi Arabia

{"ftc_utility":"none","fbar_trigger_notes":"US expats in Saudi Arabia commonly hold local SAR-denominated bank accounts through banks such as Al Rajhi, Riyad Bank, or Saudi National Bank. If aggregate foreign account balances exceed $10,000 USD at any point during the year, FBAR filing (FinCEN 114) is required. FATCA reporting under Form 8938 may also apply at higher thresholds.","ftc_utility_reason":"Saudi Arabia imposes no personal income tax on individuals, so there are no foreign taxes paid on earned income against which a US Foreign Tax Credit could be applied. US expats in Saudi Arabia typically rely on the FEIE rather than the FTC. The 20% corporate income tax applicable to non-Saudi businesses does not generate individual-level FTC credits for employed expats.","presence_day_count_notes":"Saudi Arabia grants residency through employer-sponsored Iqama (residency permit). US expats on employer-sponsored Iqama visas can typically meet the 330-day physical presence test without complications. Exit and re-entry requirements tied to Iqama renewals should be tracked carefully as extended absences from Saudi Arabia can affect residency status but generally do not prevent meeting the 330-day threshold if time outside Saudi Arabia is kept within the 35-day allowance.","typical_qualifying_method":"either","housing_exclusion_available":true,"physical_presence_test_applies":true,"estimated_housing_exclusion_usd":40000,"local_tax_rate_on_earned_income":0,"bona_fide_residence_test_applies":true}

{"pension_income":{"notes":"Pension income received by individuals residing in Saudi Arabia is not subject to local income tax. Non-Saudi employees may be enrolled in the General Organization for Social Insurance (GOSI) if working for a Saudi entity, but pension receipts from abroad are not taxed locally.","tax_rate":null,"locally_taxed":false},"social_security":{"notes":"US Social Security benefits are not taxed locally in Saudi Arabia. No totalization agreement exists between the US and Saudi Arabia, meaning US expats working in Saudi Arabia may owe Social Security contributions in both countries depending on employment structure. Self-employed US citizens in Saudi Arabia typically remain subject to US self-employment tax.","locally_taxed":false,"treaty_protection":false},"roth_distributions":{"notes":"No local income tax applies to Roth distributions for residents of Saudi Arabia. Roth distributions are already tax-free in the US for qualifying withdrawals, so there is no double-taxation concern in this jurisdiction.","locally_taxed":false},"us_401k_ira_distributions":{"notes":"Saudi Arabia does not impose personal income tax on individuals. There is no US-Saudi Arabia comprehensive income tax treaty in force. US citizens residing in Saudi Arabia pay no local tax on 401k or IRA distributions received while living there. US tax obligations on these distributions remain unchanged and must be handled with the IRS directly.","tax_rate":null,"locally_taxed":false,"treaty_protection":false}}

{"rate":0,"notes":"Saudi nationals pay no capital gains tax on personal investments. Foreign investors selling shares in Saudi companies may be subject to a 20% corporate-level tax, but individual capital gains for residents are not taxed.","details":{"tax_type":"Capital Gains Tax","country_name":"Saudi Arabia","country_iso_code":"SAU","source_references":["PwC Worldwide Tax Summaries - Saudi Arabia","KPMG Saudi Arabia Tax Profile","Saudi Zakat, Tax and Customs Authority (ZATCA)"],"last_verified_date":"2026-06-03","general_description":"Saudi Arabia does not impose a personal capital gains tax on individuals. Gains from the sale of securities by non-resident foreign investors are subject to a 20% withholding tax under the zakat and income tax framework, but Saudi nationals and GCC nationals are subject to zakat rather than income tax, and their capital gains are not separately taxed.","corporate_capital_gains":{"rate":0.2,"tax_treatment":"Capital gains earned by non-Saudi, non-GCC corporate entities are taxed at the standard corporate income tax rate of 20%. Gains are included in taxable income and not treated as a separate category."},"individual_capital_gains":{"rate":0,"tax_treatment":"No capital gains tax applies to Saudi nationals or GCC nationals on personal investment gains. Non-resident foreign individuals selling Saudi-listed securities face a 20% withholding tax on gains. Saudi residents who are non-GCC foreign nationals are subject to income tax at 20% on business-related gains."}}}

{"notes":"Dividends paid to non-resident foreign shareholders from Saudi entities are subject to a 5% withholding tax. Dividends received by Saudi nationals are not subject to income tax; they fall under the zakat system. Dividends paid to resident foreign individuals engaged in business activities may be included in taxable income at 20%.","rates":[{"rate":0.05,"type":"withholding","notes":"Standard withholding tax on dividends paid to non-residents. Rate may be reduced under applicable tax treaties."},{"rate":0,"type":"exempt","notes":"Saudi and GCC nationals are exempt from income tax on dividends; subject to zakat instead."},{"rate":0.2,"type":"flat","notes":"Dividends received by non-Saudi resident individuals from business activities may be taxed at the 20% income tax rate applicable to non-Saudis."}]}